Finance Minister Nirmala Sitharaman presents the Union Budget

The first Budget of the Modi government since the NDA’s return to power for a third consecutive term aims to balance taxpayer relief with measures to uphold fiscal discipline. Unlike in 2019, when the BJP held 303 seats in the Lok Sabha, it now has 240 seats. The dynamics of coalition politics and the aspirations of regional coalition partners cannot be ignored. The reduced seat count for the BJP may indicate dissatisfaction and dissent regarding the economic policies implemented by the government during its second term from 2019 to 2024. The electorate appears to have expressed disappointment with the government’s ability to address its concerns and anxieties, making this Budget highly anticipated.

Also Read:India’s Tiranga: A Symbol of Unity and Pride

For FY 2023-24, the fiscal deficit was 5.63% of GDP, with a target of 5.1% for FY 2024-25. Given the substantial contribution of personal tax to overall direct-tax collections, the government is unlikely to introduce measures that would significantly reduce tax revenue. Prior to the Union Budget, Ms. Sitharaman presented the Economic Survey for the financial year 2024 in the Lok Sabha on July 22. The Survey projected India’s GDP growth for FY 2025 to be between 6.5% and 7%, which is lower than the 8.2% growth estimated for the previous financial year.

Also Read:PM Modi Criticizes Opposition Ahead of Parliament Budget Session

Focus on Agricultural Research, Employment, and Skills Development

Ms. Sitharaman announced, “To transform agricultural research, our government will conduct a comprehensive review of the agricultural research framework, focusing on increasing productivity and developing climate-resilient varieties. Funding will be provided in a challenge mode, including to the private sector, government and external domain experts, who will oversee the research.”

Also Read:NEET-UG 2024: Reveals That the Paper Leak Happened Long Before the Exam Date

She also mentioned that 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops will be made available to farmers. The Finance Minister emphasized that the Budget will prioritize employment, skills development, MSMEs, and the middle class. “The Budget for FY25 will allocate ₹1.48 lakh crore for education, employment, and skills development… Implementation of various schemes announced in the Interim Budget in February is still ongoing,” she said.

Also Read:Celebrities pay tribute to Tishaa Kumar at her funeral